Sofia (002572): Efforts to diversify channels and large household product lines focus on improving industry demand
The company’s recent situation We recently organized a Sofia conference call. During the meeting, the company leaders and investors conducted in-depth exchanges. The main points are as follows: Comment 1, assembly, Internet, and 2B engineering channels are actively promoted to seize industry traffic entrances.Facing the current situation of decentralized industry traffic, the company actively promotes a diversified channel model in 2019 to lay the foundation for growth in 2020: 1) The expansion model of the package channel is clear, and the company’s headquarters signs cooperation with national installation 北京夜生活网 companies and regional leading installation companies, Develop special contribution product lines, and wait for the subsequent incremental performance contribution; 2) further development of Internet channels, the existing team size of more than 400 people, the proportion of passenger flow to promote continuous improvement from the current 25%, and play the drainage efficiency;The 2B project channel promotes the extension of categories. From the existing wardrobes, the categories of cabinets and wooden doors are gradually opened, and quality customers are expanded under risk control.On the scale of dealers, the company plans to further improve the level of refined management, increase assistance and optimization, optimize the elimination of tail distribution, and improve the overall strength of dealers. 2. High-frequency launches new products to enhance product strength, and the large home product line continues to advance.From the perspective of product structure, the company ‘s more environmentally friendly Kangchun board products ‘order share has increased from 14% to 25% since the beginning of the year. At present, the company ‘s distributors’ prices for Kangchun board products are still relatively high.A number of new light luxury series products (all pure Kangchun board products) developed by the company in 19 years have been gradually promoted in the terminal. We expect that the proportion of subsequent Kangchun board products is expected to continue to increase, driving the unit price growth of customers.From the perspective of categories, we expect that cabinets and wooden door products will be able to achieve steady and rapid development driven by the increase in retail marketing and the expansion of engineering customers. 3. Pay attention to the recovery of demand brought by the rebound in real estate completion.The actual real estate completed area is expected to usher in improvement in 2020. We believe that after the proportion of hardcover houses rises, the rebound in real estate completion will first spur orders for 2B engineering business in the home industry; the gradual completion of real estate completion projects is also expected to drive the ToC traffic in the home industry to recover (generallyThe period of stay is 4-6 months.) Leading companies have accumulated customer acquisitions during the industry’s downward phase, channel expansion, product layout advantages, and are expected to take the lead in gaining market share. In the future, we will also conduct passenger flow and order acceptance in the home industry.Keep track. It is recommended to keep the profit forecast unchanged. The current forecast corresponds to 19/20 18/15 times P / E.Maintain Outperform rating and maintain target price of 23.6 yuan is unchanged, corresponding to 22/19 times P / E in 19/20, which has 24% growth space compared to current 杭州夜网论坛 expectations. Risks Raw material prices fluctuated sharply and real estate scale exceeded expectations.

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